Malaysia-China visa-free travel drives business events growth

Secondary destinations like Zhangjiajie (pictured) are rising in popularity among Malaysia’s outbound corporates

Malaysia and China’s implementation of visa-free travel – in celebration of 50 years of Malaysia-China bilateral diplomatic relations – for their citizens has significantly boosted business events tourism.

The reciprocal visa-free policy, effective until the end of 2025 for Malaysians and 2026 for Chinese, has led to a significant increase in Chinese visitors to Malaysia since its implementation on December 1, 2023. In 1H2024, Chinese arrivals totalled 1.5 million, a 190.8 per cent increase over the same period in 2023.

Secondary destinations like Zhangjiajie (pictured) are rising in popularity among Malaysia’s outbound corporates

Faeez Fadhlillah, co-founder and CEO of Tripfez Travel & Tours, told TTGmice that small corporate groups travelling to China for meetings or incentive trips have shortened to three weeks or less, due to the elimination of visa-related hassles. However, Faeez noted that groups of over 50 still require longer lead times due to the high demand for airline seats.

“In the past, China was seldom a choice for Malaysian companies looking to reward their employees with an all-expenses-paid trip abroad. Obtaining a Chinese visa used to be a hassle, so companies often chose other destinations that did not require a visa,” he explained.

He added that secondary destinations in China, such as Xi’an and Zhangjiajie, are now favoured over first-tier cities like Shanghai and Guangzhou, thanks to the former’s cultural and scenic experiences.

Mint Leong, managing director of Sunflower Holidays in Kuala Lumpur, noted that improved direct air access from Kuala Lumpur to second- and third-tier cities is driving outbound travel demand to China.

As more Malaysians are eager to explore and seek in-depth experiences at their destinations, Leong is promoting destinations such as Lanzhou, Yantai, Chongqing, Qingdao, and Lijiang.

She said: “Gone are the days when Malaysians were content with sit-in coaches and visiting many places in one trip. Now, they want to explore the destination and experience it like a local.”

For inbound incentive travel to Malaysia from China, Hasniza Suid, director of sales, Langkawi MICE Holidays & Tours, shared that the duty-free status of Langkawi, as well as its beaches and islands, appeals to Chinese incentive groups.

As there were no direct flights from China to Langkawi, many groups on scheduled flights travel from either Kuala Lumpur or Penang to Langkawi, resulting in an average stay of at least three nights.

Zulkifli Rahman, director of sales and marketing at The Ritz-Carlton, Langkawi, concurred, sharing that the average length of stay for Chinese groups has increased from two nights to five nights, as many organisers prefer to stay at a single accommodation rather than split between multiple locations.

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